It is the perfect time to start acquiring property assets in Sri Lanka following the latest assessment from industry experts that the country’s real estate sector is showing signs of picking up, and chief of them are the gradually stabilising home and land prices. There is no reason to believe that a bubble is coming anytime soon.
The bold chorus from the panel of experts at the Lanka Property Show 2019 was clear: “Now is the time to buy.” The assertion, apparently, was backed by the collective belief that there will be specific needs in the market that developers can fulfil.
One segment of the industry that appears to consistently draw attention is the premium offerings, which according to show panel will remain attractive irrespective of the general market condition.
“The need is always there in affordable luxury segments which we cater to mostly,” the panel declared.
Prospects And Challenges
But while the panel painted an overall bright prospect for Sri Lanka’s real estate, it also acknowledged that there are challenges ahead that must be addressed. The cost, for instance, of building properties will require sound management in order for developers to keep property prices inviting and a good profit margin at the same time.
It is imperative too on the part of the government to create an environment that will encourage the inflow of offshore finances for industry players. One way to do so is to make use of financial instruments that the panel said should prompt outside investors to take a look on Sri Lanka and seriously consider of putting in money on property projects.
In the same event, experts downplayed the likelihood of a bubble in light of the seeming slowdown the market is going through. As already stated, the need will always be in effect and the panel even predicted that in the case of Colombo, the country’s capital, a shortage of apartments will be felt in the next two to three years.
Market Becoming Stable
It might be that the housing market has recently been sluggish, which experts blamed on rising interest rates and the absence of financing, but the latest indicators suggest that some form of stability is now taking effect.
“Prices of land and apartments have now stabilized,” the report from Economy Next stated, adding that property prices in Sri Lanka have been growing since 2009, an observation supported by the recent note from ratings agency Standard & Poor.
Sri Lanka’s real estate has so far recorded an average growth of six to eight per cent, in terms of sales prices, and according to S&P the trend is only expected to continue in the remaining months of 2019, somehow supporting the claim from Lanka Property Show panel that now is the time to buy properties in the country.